Selling a property in old age

What options do I have if I want to sell my house in old age?

Several: sell and move into something smaller, sell with a right of residence or usufruct, partial sale – or rent out instead of selling. Each option has its own tax and financial consequences. We advise you objectively on which solution best suits your life situation.

Why sell in old age?

Too large.

The children have moved out, the upper floor stands empty, the cellar is full of things no one needs any more. Heating, cleaning and maintaining a house of 160 square metres is a disproportionate effort for one or two people.

Accessibility.

Stairs, bathtubs, high thresholds — what was no problem at 50 becomes a risk at 70. Conversion is possible, but often more expensive than moving to a barrier-free flat.

Financial freedom.

The house is paid off, but the pension is tight? The sale proceeds can make later life considerably more comfortable. A flat in Striesen for €280,000 instead of a house in Loschwitz for €800,000 — and €500,000 as a financial reserve.

Care.

If a move into a care facility becomes necessary, the costs must be financed. The social welfare office assesses your assets — including real estate. Selling in good time gives you control over your assets.

In my work I find that most older owners wait two to three years too long. Not for economic reasons, but emotional ones. That's understandable. But a planned sale at the right time is always better than a forced sale under time pressure.

Are you thinking about selling your property?

Discuss without obligation

What alternatives are there to selling the property in old age?

Selling is not the only option. Sometimes it is not even the best one.

Life annuity (Leibrente)

You sell the house but retain a lifelong right of residence. The buyer pays you a monthly annuity. Advantage: you stay in your home and have regular income. Disadvantage: the annuity is usually well below market value. In Dresden there are few providers who offer life annuities reputably.

Usufruct (Nießbrauch)

Similar to a life annuity, but you retain the right of use (living or letting). Ownership changes, you stay. Fiscally attractive for gifts to children — the usufruct reduces the value of the gift.

Partial sale

You sell a share (e.g. 50 percent) of your house to a provider and receive a lump sum. You continue to live there. Sounds good, but has catches: monthly usage fees, hidden costs, limited freedom of decision. In most cases I advise against it.

Conversion

Barrier-free bathroom, stairlift, moving the bedroom to the ground floor. Cost: €20,000 to €60,000, depending on the scope. Worthwhile if you want to stay in your house and it makes economic sense.

What housing alternatives are there for seniors in Dresden?

Option 01

Smaller flat

The classic. From a 160-square-metre house to an 80-square-metre flat — with a lift, balcony and no gardening. In Blasewitz, Striesen or at Schillerplatz you will find comfortable flats with good infrastructure.

Option 02

Senior residences

Dresden offers several high-quality facilities: at the Waldpark, in Radebeul, in Blasewitz. Cost: €2,000 to €4,000 per month, depending on amenities and level of care.

Option 03

Assisted living

Your own flat with optional services (emergency call, cleaning, meals). Independent, but with a safety net. In Dresden there are offers from €1,200 per month.

“You are not giving up your life. You are making room for a new chapter. And you are giving someone else the chance to be happy in your house.”

The psychology of letting go

How do I cope emotionally with selling my long-time home?

I'll be honest: this section is the most important on this page. Because the biggest hurdle in a later-life sale is not the price, not the process and not the taxes. It is the feeling of giving up a piece of your life story.

The house where the children grew up. The garden you tended for decades. The neighbours who became friends. All of that has a value that cannot be measured in euros.

What I always tell older owners: you are not giving up your life. You are making room for a new chapter. And you are giving someone else the chance to be happy in your house.

Can I sell my property tax-free in old age?

Selling tax-free after 10 years

If you have already owned your property for more than ten years, speculation tax generally does not apply. Read more about this in our guide on selling tax-free after 10 years.

Good news: if you have lived in your house yourself, the sale is usually tax-free. Under Section 23 EStG, no speculation tax is due if:

The property was owner-occupied in the year of sale and the two preceding calendar years, OR
The property has been owned for more than 10 years

For older owners, at least one of these conditions is almost always met. That means: the entire sale proceeds are yours — tax-free.

The entire sale proceeds are yours — tax-free

Note: This information is no substitute for tax advice from a tax advisor.

How do I prepare practically for selling my property in old age?

Clearing out:

Take your time. Not everything has to go — but a tidy property sells faster and better. In Dresden there are sensitive clearance companies that work with respect for your keepsakes.

Renovate or sell "as seen"?

My advice: small cosmetic measures yes (fresh walls, clean windows, a well-kept entrance area). Larger refurbishments no. Buyers bring their own ideas — and factor renovation costs into their offer.

Documents:

Land register extract, energy certificate, floor plans and, if needed, an appraisal. Many older owners no longer have the documents to hand — we help obtain them.

land register extract, energy certificate, floor plans and, if needed, an appraisal. Many older owners no longer have the documents to hand — we help obtain them.

How does Immobilienpartner Sachsen support the sale of my property?

1. Free initial consultation — without time pressure, without obligation

2. Viewing and an honest value assessment

3. Joint decision on strategy and timing

4. Professional marketing with regard for your situation

5. Viewings

6. Negotiation and purchase contract

7. Notary appointment and handover — at your pace

Frequently asked questions

I want to sell my house in old age — what are my options?

You have several possibilities: sell and move into a smaller apartment, sell with a right of residence or usufruct, a partial sale, or renting out instead of selling. Each option has tax and financial advantages and disadvantages. We advise you objectively on which solution best suits your life situation.

Do I have to sell my house if I move into a care home?

Not immediately. But the social welfare office checks your assets when you apply for social assistance. Properties count as assets. A timely sale and the investment of the proceeds give you more control.

How long can I still live in the house after the sale?

That is a matter of negotiation. A leaseback model (you sell and rent back) is possible. Three to six months after the notary appointment for the move is customary.

What happens to my furniture and keepsakes?

Take with you what is important to you. For the rest there are clearance services - or you offer pieces to neighbours and family. Many buyers are even pleased about individual pieces of furniture that belong to the house.

Can I gift the house to my children instead of selling it?

Yes, with a reserved usufruct. This can make sense for tax purposes (allowances: 400,000 euros per child). But: you lose control. And if the children later sell the house, speculation tax may apply. Tax advice is essential here.

How do I find the right new apartment?

Start the search in parallel with preparing the sale. We can support you with this too - our network knows apartments that are not yet publicly listed.

Managing Director & Property Adviser

Robert Kramer

Solution-finder with many years of experience as a management consultant and managing director